Former baseball star Alex Rodriguez and Marc Lore encountered a setback in their quest to claim majority ownership of the Minnesota Timberwolves as they lost the financial backing of the Carlyle Group. With only one payment left to seal the deal, the ownership transition that began in April 2021 has hit a roadblock. Rodriguez and Lore had initially purchased two installments of 20% each, valuing the franchise at $1.5 billion. They then exercised their rights to buy an additional 40% earlier this year, setting the stage for their ownership. However, current owner Glen Taylor revealed that they now need to seek alternative means to raise the funds required for the final installment by the deadline of March 27.
Search for New Funding Sources
Taylor disclosed that the equity group that was supposed to provide $300 million for the last payment had either pulled out or was not approved by the NBA. This unexpected development has forced Rodriguez and Lore to scramble for new financial avenues to secure the necessary funds, casting uncertainty over the completion of the ownership deal. The reason behind Carlyle Group’s withdrawal remains unclear, with the NBA clarifying that it did not directly block Carlyle’s investment. In response to this setback, Lore and Rodriguez are reportedly exploring alternative financing options to salvage the situation in case Carlyle’s funding does not materialize.
Approval and Ownership Transition
Despite the financial challenges, if Rodriguez and Lore manage to gather the required resources and make the final payment, they would still need the approval of the NBA’s Board of Governors to finalize the change of ownership. This process adds another layer of complexity to the situation, requiring thorough scrutiny and verification before the ownership transition can be completed. Moreover, as part of the deal, the duo is set to acquire the controlling stake of the WNBA’s Minnesota Lynx, further underscoring the significance and implications of the ownership change for both the Timberwolves and the Lynx organizations.
The unexpected withdrawal of financial backing from the Carlyle Group has created a significant obstacle for Alex Rodriguez and Marc Lore in their pursuit of majority ownership of the Minnesota Timberwolves. The ensuing search for new funding sources and the uncertainties surrounding the completion of the ownership deal highlight the challenges and complexities involved in such high-stakes business transactions within the realm of professional sports. Only time will tell whether Rodriguez and Lore can overcome this hurdle and realize their ambition of leading the Timberwolves into a new era under their ownership.
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